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Bill Amendments

S1961 - Details

S1961 - Summary

Establishes an energy system tax stabilization reserve fund in the Lowville Central School District to lessen or prevent increases in the school district's real property tax levy resulting from decreases in revenue due to changes in the amount of or termination of payments in lieu of taxes receivable.

S1961 - Sponsor Memo

BILL NUMBER:S1961
TITLE OF BILL: An act to establish an energy system tax stabilization
reserve fund in the Lowville Central School District to lessen or
prevent increases in the school district's real property tax levy
PURPOSE: To allow the Lowville Central School District to establish a
real property tax stabilization fund out of part of the proceeds of a
payment in lieu of taxes (PILOT) agreement from the Maple Ridge Wind
Farm. Upon termination or decrease of the PILOT payments, transfers from
the fund would ease a transition in the tax levy so that taxpayers do
not have to bear a sudden spike in real property taxes.
SUMMARY OF PROVISIONS:
Section one: The legislative findings section recognizes that the school
district's current receipt of significant PILOT payments from the wind
farm will at some point either terminate, or significantly decrease,
which could result in a massive destabilization of the district's tax
base and the amount of its tax levy to meet current budget levels.
Section two: This section makes definitions of important terms in the
bill, including providing that PILOT payments may mean either PILOTS
under Real Property Tax Law 487 (RPTL Section creating municipalities to
enter into PILOT agreements for wind energy systems) or Subdivision
fifteen of § 858 of the General Municipal Law (authorizing IDA created

PILOT's) and adopting the definition of wind energy systems already
found in Real Property Tax Law § 487.
Section three: (a) This subsection permits the school district to create
a tax stabilization fund by paying into such funds the amount of PILOT
payments received which is not required to prevent an increase from the
real property tax levy over the preceding budget year.
(b) This subsection permits the deposit of PILOT payments already
accrued into the stabilization fund.
(c) This subsection provides limitations on the ability to withdraw from
the stabilization fund as follows (1) no withdrawal may be made in any
year in which PILOT payments receivable equal or exceed those from the
preceding year; (2) for any year in which the amount of payments is less
than the preceding year, a withdrawal may be made in the amount of the
decrease; (3) for any fiscal year in which no PILOT payment will be
made, a withdrawal may be made in an amount not to exceed the PILOT
payment for the preceding year plus the amount, if any, authorized to be
withdrawn in such preceding year.
Other provisions require withdrawals for any other purpose would require
voter approval submitted as a separate proposition and applies existing
controls and reporting requirements over expenditure of district money.
Section four: Makes requirements for information concerning the fund,
deposits into, expenditures from it, and the affect on the tax levy for
purposes of the property tax report card under subdivision seven of
1716 of the Education Law.
Section five: Makes provisions with regard to the real property tax cap
so that use of the fund does not facilitate avoiding such cap.
Section six: Should this act take effect after the last date for
submission of the district's real property tax report card to the
Department of Education, this section makes provision for public notice
of a statement concerning payment into the fund and the effect on the
tax levy.
Section seven: provides for an immediate effective date.
EXISTING LAW: A similar tax stabilization fund was established for the
Oswego community as a result of large PILOT payments from a nuclear
energy facility. (See Chapter 202, Laws of 2001).
JUSTIFICATION: The Maple Ridge Wind Farm in Lewis County, one of the
largest and most successful wind energy enterprises in the United
States, pays an annual PILOT payment of around $8.9 million to munici-
palities and school districts which host wind towers. This PILOT payment
has been one of the leading causes for wide community acceptance and
support of this important alternative energy project.
The Lowville Central School District receives about $3.9 million of this
amount each year. The district has employed this money prudently, using
about $2.7 million each year to keep the tax levy level and allowing the
balance to accrue in fund balance. The PILOT agreement started in the
2006-2007 school year and will end in 2021-2022. At that point, the
PILOT will either terminate completely or be replaced, perhaps by an IDA
sponsored PILOT which would not be as generous. The result would be that
the PILOT at that point would cease to be a windfall and its loss would
become the source of wrenching dislocation in the district's finances.
The district requires the approval given in this bill to accumulate a
tax stabilization fund which will one day be equal to the task of
smoothing the transition that will be required by ramping up the tax
levy over a period of time. Absorbing all of the loss or decrease in the
PILOT in one or two years would cause a severe spike in the tax levy,
dramatic slashing of programs or both. The bill contains significant
safeguards to insure the dedication of PILOT funds for this purpose.
LEGISLATIVE HISTORY: 2011-12 S. 6835 - Passed Senate/A. 9859 - Real
Property Taxation Committee.
FISCAL IMPLICATIONS: None for the State of New York. Positive impact on
the district's fiscal and tax levy stability.
EFFECTIVE DATE: Immediate.

S T A T E O F N E W Y O R K
________________________________________________________________________
1961
2013-2014 Regular Sessions
I N S E N A T E
(PREFILED)
January 9, 2013
___________
Introduced by Sen. GRIFFO -- read twice and ordered printed, and when
printed to be committed to the Committee on Education
AN ACT to establish an energy system tax stabilization reserve fund in
the Lowville Central School District to lessen or prevent increases in
the school district's real property tax levy
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings. The legislature hereby finds that the
private development and ownership of wind energy systems located within
the Lowville Central School District may result in instability in the
real property tax base and the budgets of the district due to the uncer-
tainty with the assessments of such wind energy systems at the time the
payments in lieu of taxes terminate.
S 2. Definitions. As used in this act:
(a) "Board of education" or "board" means the board of education of
the Lowville Central School District.
(b) "Energy system tax stabilization reserve fund" or "fund" means the
energy system tax stabilization reserve fund established pursuant to
this act.
(c) "Payments in lieu of taxes" or "payments" means payments in lieu
of taxes receivable by the school district pursuant to contracts entered
into in accordance with section 487 of the real property tax law or
subdivision 15 of section 858 of the general municipal law on any wind
energy system located wholly or partially within the Lowville Central
School District.
(d) "School district" or "district" means the Lowville Central School
District.
(e) "Wind energy systems" shall be defined as in section 487 of the
real property tax law and shall include the land upon which the system
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01518-01-3

S. 1961 2
is located, any equipment used in such generation, and equipment leading
from the system to the interconnection with the transmission system.
S 3. The board of education, without voter approval, is hereby author-
ized to establish an energy system tax stabilization reserve fund to
lessen or prevent increases in the school district's real property tax
levy resulting from decreases in revenue due to changes in the amount of
or termination of payments in lieu of taxes receivable by the school
district. Moneys shall be paid into and withdrawn from the fund, and the
fund shall be administered, as follows:
(a) For any school district fiscal year commencing after the effective
date of this act and after the establishment of the energy system tax
stabilization reserve fund, the board of education, without voter
approval, may determine that there shall be paid into the fund all or
any portion of the amount by which the payments in lieu of taxes receiv-
able by the school district for such fiscal year is not required to
prevent an increase in the school tax levy from the immediately preced-
ing fiscal year, provided that no payment into the reserve fund shall
cause the balance of the fund to exceed 100 percent of the budget for
such immediately preceding fiscal year. Such determination may be
amended to reduce the amount paid into the fund in the event that the
district's original proposed budget is not approved by the voters.
(b) The board of education, without voter approval, is hereby author-
ized to make a one-time deposit into the energy system tax stabilization
reserve fund in an amount not to exceed the balance over any maximum
allowable balance as required by any other law that accrued prior to the
establishment of the energy system tax stabilization reserve fund as a
result of the receipt of any payment in lieu of taxes.
(c) Moneys may be withdrawn from the energy system tax stabilization
reserve fund subject to the following limitations:
(1) For any fiscal year for which payments in lieu of taxes receivable
by the school district equal or exceed the amount of such payments
received for the immediately preceding fiscal year, no amount shall be
withdrawn from the fund.
(2) For any fiscal year for which payments in lieu of taxes receivable
by the school district are less than the amount of such payments
received for the immediately preceding fiscal year, the board of educa-
tion, without voter approval, may authorize a withdrawal from the fund
in an amount not to exceed the amount of the payments received for the
immediately preceding year less the amount of the payments receivable
for the fiscal year for which the budget and tax levy is being deter-
mined.
(3) For any fiscal year for which the school district does not antic-
ipate receiving any payments in lieu of taxes, the board of education,
without voter approval, may authorize a withdrawal from the fund in an
amount not to exceed the amount of such payments received for the last
preceding fiscal year for which such payments were received plus the
amount, if any, which the board of education authorized to be withdrawn
from the fund for such last preceding fiscal year.
(4) Notwithstanding paragraph 1 of this subdivision, and in addition
to any withdrawal from the fund authorized pursuant to paragraph 2 or 3
of this subdivision, moneys may be withdrawn from the fund for any
fiscal year in such amount and for such purposes as may be set forth in
a separate proposition submitted by the board of education and approved
by the qualified voters of the school district.
(c) Determinations by the board of education to pay money into the
energy system tax stabilization reserve fund, authorizations by the
S. 1961 3
board to withdraw money from the fund, and decisions by the board to
submit a proposition to the voters authorizing a withdrawal from the
fund shall be made on or before the last date provided by law for the
submission to the state education department of the school district's
property tax report card pursuant to subdivision 7 of section 1716 of
the education law.
(d) The moneys in the energy system tax stabilization reserve fund
shall be deposited, invested and accounted for in the manner provided
for in subdivisions 2 and 6 of section 3651 and section 3652 of the
education law.
S 4. The property tax report card prepared by the school district
pursuant to subdivision 7 of section 1716 of the education law shall
contain the following information relating to the energy system tax
stabilization reserve fund: (a) the balance of the fund as of the start
of the current fiscal year, (b) all deposits or withdrawals from the
fund for the current fiscal year, (c) an analysis of the impact of such
withdrawals on the school district's tax levy for the current fiscal
year, (d) proposed deposits and withdrawals for the ensuing fiscal year,
and (e) an analysis of the impact of such proposed deposits and with-
drawals on the projected tax levy for the ensuing fiscal year if the
proposed budget is adopted.
S 5. When computing the school district's tax levy limit for a school
year pursuant to subdivision 3 of section 2023-a of the education law:
(a) The payments in lieu of taxes receivable for the prior school year
shall be decreased by any amount paid into the energy system tax
stabilization reserve fund for such prior school year and increased by
any amount withdrawn from the fund for such prior school year.
(b) The payments in lieu of taxes receivable in the coming fiscal year
shall be decreased by the amount to be paid into the energy system tax
stabilization reserve fund for such coming fiscal year and increased by
any amount to be withdrawn from the energy system tax stabilization
reserve fund for such coming fiscal year.
S 6. Notwithstanding the provisions of subdivision (c) of section
three of this act and section four of this act, if this act shall take
effect later than fourteen days prior to the last date provided by law
for the submission to the state education department of the school
district's property tax report card for the school district's ensuing
fiscal year, then a determination by the board of education to pay money
into the fund for the ensuing fiscal year may be made on or before the
last date provided by law for the levy of taxes for such ensuing fiscal
year. Upon making such determination to pay money into the fund, the
board shall cause to be posted on the school district's website a state-
ment containing the amount of the payment into the fund and the effect
of the payment on the projected tax levy for the ensuing fiscal year.
S 7. This act shall take effect immediately.

S1961A - Details

S1961A - Summary

Establishes an energy system tax stabilization reserve fund in the Lowville Central School District to lessen or prevent increases in the school district's real property tax levy resulting from decreases in revenue due to changes in the amount of or termination of payments in lieu of taxes receivable.

S1961A - Sponsor Memo

BILL NUMBER:S1961A
TITLE OF BILL: An act to establish an energy system tax stabilization
reserve fund in the Lowville Central School District to lessen or
prevent increases in the school district's real property tax levy
PURPOSE: To allow the Lowville Central School District to establish a
real property tax stabilization fund out of part of the proceeds of a
payment in lieu of taxes (PILOT) agreement from the Maple Ridge Wind
Farm. Upon termination or decrease of the PILOT payments, transfers
from the fund would ease a transition in the tax levy so that
taxpayers do not have to bear a sudden spike in real property taxes.
SUMMARY OF PROVISIONS:
Section one: The legislative findings section recognizes that the
school district's current receipt of significant PILOT payments from
the wind farm will at some point either terminate, or significantly
decrease, which could result in a massive destabilization of the
district's tax base and the amount of its tax levy to meet current
budget levels.
Section two: This section makes definitions of important terms in the
bill, including providing that PILOT payments may mean either PILOTS
under Real Property Tax Law 487 (RPTL Section creating municipalities
to enter into PILOT agreements for wind energy systems) or Subdivision

fifteen of § 858 of the General Municipal Law
(authorizing IDA created PILOT's) and adopting the definition of wind
energy systems already found in Real Property Tax Law § 487.
Section three: (a) This subsection permits the school district to
create a tax stabilization fund by paying into such funds the amount
of PILOT payments received which is not required to prevent an
increase from the real property tax levy over the preceding budget
year.
(b) This subsection permits the deposit of PILOT payments already
accrued into the stabilization fund.
(c) This subsection provides limitations on the ability to withdraw
from the stabilization fund as follows (1) no withdrawal may be made
in any year in which PILOT payments receivable equal or exceed those
from the preceding year; (2) for any year in which the amount of
payments is less than the preceding year, a withdrawal may be made in
the amount of the decrease; (3) for any fiscal year in which no PILOT
payment will be made, a withdrawal may be made in an amount not to
exceed the PILOT payment for the preceding year plus the amount, if
any, authorized to be withdrawn in such preceding year.
Other provisions require withdrawals for any other purpose would
require voter approval submitted as a separate proposition and applies
existing controls and reporting requirements over expenditure of
district money.
Section four: Makes requirements for information concerning the fund,
deposits into, expenditures from it, and the affect on the tax levy
for purposes of the property tax report card under subdivision seven
of § 1716 of the Education Law.
Section five: Makes provisions with regard to the real property tax
cap so that use of the fund does not facilitate avoiding such cap.
Section six: Should this act take effect after the last date for
submission of the district's real property tax report card to the
Department of Education, this section makes provision for public
notice of a statement concerning payment into the fund and the effect
on the tax levy.
Section seven: provides for an immediate effective date.
EXISTING LAW: A similar tax stabilization fund was established for
the Oswego community as a result of large PILOT payments from a
nuclear energy facility. (See Chapter 202, Laws of 2001).
JUSTIFICATION: The Maple Ridge Wind Farm in Lewis County, one of the
largest and most successful wind energy enterprises in the United
States, pays an annual PILOT payment of around $8.9 million to
municipalities and school districts which host wind towers. This PILOT
payment has been one of the leading causes for wide community
acceptance and support of this important alternative energy project.
The Lowville Central School District receives about $3.9 million of
this amount each year. The district has employed this money prudently,
using about $2.7 million each year to keep the tax levy level and
allowing the balance to accrue in fund balance. The PILOT agreement
started in the 2006-2007 school year and will end in 2021-2022. At
that point, the PILOT will either terminate completely or be replaced,
perhaps by an IDA sponsored PILOT which would not be as generous. The
result would be that the PILOT at that point would cease to be a
windfall and its loss would become the source of wrenching dislocation
in the district's finances.
The district requires the approval given in this bill to accumulate a
tax stabilization fund which will one day be equal to the task of
smoothing the transition that will be required by ramping up the tax
levy over a period of time. Absorbing all of the loss or decrease in
the PILOT in one or two years would cause a severe spike in the tax
levy, dramatic slashing of programs or both. The bill contains
significant safeguards to insure the dedication of PILOT funds for
this purpose.
LEGISLATIVE HISTORY: 2011-12 S. 6835 - Passed Senate/A. 9859 - Real
Property Taxation Committee.
FISCAL IMPLICATIONS: None for the State of New York. Positive impact
on the district's fiscal and tax levy stability.
EFFECTIVE DATE: Immediate.

S T A T E O F N E W Y O R K
________________________________________________________________________
1961--A
2013-2014 Regular Sessions
I N S E N A T E
(PREFILED)
January 9, 2013
___________
Introduced by Sen. GRIFFO -- read twice and ordered printed, and when
printed to be committed to the Committee on Education -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to establish an energy system tax stabilization reserve fund in
the Lowville Central School District to lessen or prevent increases in
the school district's real property tax levy
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings. The legislature hereby finds that the
private development and ownership of wind energy systems located within
the Lowville Central School District may result in instability in the
real property tax base and the budgets of the district due to the uncer-
tainty with the assessments of such wind energy systems at the time the
payments in lieu of taxes terminate.
S 2. Definitions. As used in this act:
(a) "Board of education" or "board" means the board of education of
the Lowville Central School District.
(b) "Energy system tax stabilization reserve fund" or "fund" means the
energy system tax stabilization reserve fund established pursuant to
this act.
(c) "Payments in lieu of taxes" or "payments" means payments in lieu
of taxes receivable by the school district pursuant to contracts entered
into in accordance with section 487 of the real property tax law or
subdivision 15 of section 858 of the general municipal law on any wind
energy system located wholly or partially within the Lowville Central
School District.
(d) "School district" or "district" means the Lowville Central School
District.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01518-02-3

S. 1961--A 2
(e) "Wind energy systems" shall be defined as in section 487 of the
real property tax law and shall include the land upon which the system
is located, any equipment used in such generation, and equipment leading
from the system to the interconnection with the transmission system.
S 3. The board of education is hereby authorized to establish an ener-
gy system tax stabilization reserve fund to lessen or prevent increases
in the school district's real property tax levy resulting from decreases
in revenue due to changes in the amount of or termination of payments in
lieu of taxes receivable by the school district provided, however, that
no such fund shall be established unless approved by a majority vote of
the qualified voters of the district present and voting on a separate
ballot proposition therefor at either a special district meeting which
the board of education may call for such purposes, or at the annual
district meeting and election, to be noticed and conducted in either
case in accordance with the provisions of article 41 of the education
law. Further, the notice of the special district meeting or annual
district meeting and election, as applicable, at which such ballot
proposition shall be presented to the voters, shall explain the means by
which moneys shall be paid into and withdrawn from such fund as set
forth hereinafter in subdivisions (a) and (c) of this section. Moneys
shall be paid into and withdrawn from the fund, and the fund shall be
administered, as follows:
(a) For any school district fiscal year commencing after the effective
date of this act and after the establishment of the energy system tax
stabilization reserve fund, the board of education may determine that
there shall be paid into the fund all or any portion of the amount by
which the payments in lieu of taxes receivable by the school district
for such fiscal year is not required to prevent an increase in the
school tax levy from the immediately preceding fiscal year, provided
that no payment into the reserve fund shall cause the balance of the
fund to exceed 100 percent of the budget for such immediately preceding
fiscal year. Such determination may be amended to reduce the amount paid
into the fund in the event that the district's original proposed budget
is not approved by the voters.
(b) The board of education is hereby authorized to make a one-time
deposit into the energy system tax stabilization reserve fund in an
amount not to exceed the balance over any maximum allowable balance as
required by any other law that accrued prior to the establishment of the
energy system tax stabilization reserve fund as a result of the receipt
of any payment in lieu of taxes, provided, however, that no such deposit
shall be made unless approved by a majority vote of the qualified voters
of the district present and voting on a separate ballot proposition
therefor at either a special district meeting which the board of educa-
tion may call for such purpose, or at the annual district meeting and
election, to be noticed and conducted in either case in accordance with
the provisions of article 41 of the education law. Further, the notice
of the special district meeting or annual district meeting and election,
as applicable, at which such ballot proposition shall be presented to
the voters, shall explain the means by which moneys shall be paid into
and withdrawn from such fund as set forth hereinafter in subdivisions
(a) and (c) of this section.
(c) Moneys may be withdrawn from the energy system tax stabilization
reserve fund subject to the following limitations:
(1) For any fiscal year for which payments in lieu of taxes receivable
by the school district equal or exceed the amount of such payments
S. 1961--A 3
received for the immediately preceding fiscal year, no amount shall be
withdrawn from the fund.
(2) For any fiscal year for which payments in lieu of taxes receivable
by the school district are less than the amount of such payments
received for the immediately preceding fiscal year, the board of educa-
tion may authorize a withdrawal from the fund in an amount not to exceed
the amount of the payments received for the immediately preceding year
less the amount of the payments receivable for the fiscal year for which
the budget and tax levy is being determined provided, however, that no
such withdrawal shall be made unless approved by a majority of the qual-
ified voters of the district present and voting on a separate ballot
proposition therefor at the annual district meeting and election, in
accordance with the provisions of article 41 of the education law.
(3) For any fiscal year for which the school district does not antic-
ipate receiving any payments in lieu of taxes, the board of education
may authorize a withdrawal from the fund in an amount not to exceed the
amount of such payments received for the last preceding fiscal year for
which such payments were received plus the amount, if any, which the
board of education authorized to be withdrawn from the fund for such
last preceding fiscal year provided, however, that no such withdrawal
shall be made unless approved by a majority of the qualified voters of
the district present and voting on a separate ballot proposition there-
for at the annual district meeting and election in accordance with the
provisions of article 41 of the education law.
(4) Notwithstanding paragraph 1 of this subdivision, and in addition
to any withdrawal from the fund authorized pursuant to paragraph 2 or 3
of this subdivision, moneys may be withdrawn from the fund for any
fiscal year to be expended for any other lawful purpose, provided,
however, that no such withdrawal and expenditure shall be made unless
approved by a majority vote of the qualified voters of the district
present and voting on a separate ballot proposition therefor at either a
special district meeting which the board of education may call for such
purpose, or at the annual district meeting and election, to be noticed
and conducted in either case in accordance with the provisions of arti-
cle 41 of the education law, such purposes as may be set forth in a
separate proposition submitted by the board of education and approved by
the qualified voters of the school district.
(d) Determinations by the board of education to pay money into the
energy system tax stabilization reserve fund, authorizations by the
board to withdraw money from the fund, and decisions by the board to
submit a ballot proposition to the voters authorizing a withdrawal from
the fund shall be made on or before the last date provided by law for
the submission to the state education department of the school
district's property tax report card pursuant to subdivision 7 of section
1716 of the education law.
(e) The moneys in the energy system tax stabilization reserve fund
shall be deposited, invested and accounted for in the manner provided
for in subdivisions 2 and 6 of section 3651 and section 3652 of the
education law.
S 4. The property tax report card prepared by the school district
pursuant to subdivision 7 of section 1716 of the education law shall
contain the following information relating to the energy system tax
stabilization reserve fund: (a) the balance of the fund as of the start
of the current fiscal year, (b) all deposits or withdrawals from the
fund for the current fiscal year, (c) an analysis of the impact of such
withdrawals on the school district's tax levy for the current fiscal
S. 1961--A 4
year, (d) proposed deposits and withdrawals for the ensuing fiscal year,
and (e) an analysis of the impact of such proposed deposits and with-
drawals on the projected tax levy for the ensuing fiscal year if the
proposed budget is adopted.
S 5. When computing the school district's tax levy limit for a school
year pursuant to subdivision 3 of section 2023-a of the education law:
(a) The payments in lieu of taxes receivable for the prior school year
shall be decreased by any amount paid into the energy system tax
stabilization reserve fund for such prior school year and increased by
any amount withdrawn from the fund for such prior school year.
(b) The payments in lieu of taxes receivable in the coming fiscal year
shall be decreased by the amount to be paid into the energy system tax
stabilization reserve fund for such coming fiscal year and increased by
any amount to be withdrawn from the energy system tax stabilization
reserve fund for such coming fiscal year.
S 6. Notwithstanding the provisions of subdivision (c) of section
three of this act and section four of this act, if this act shall take
effect later than fourteen days prior to the last date provided by law
for the submission to the state education department of the school
district's property tax report card for the school district's ensuing
fiscal year, then a determination by the board of education to pay money
into the fund for the ensuing fiscal year may be made on or before the
last date provided by law for the levy of taxes for such ensuing fiscal
year. Upon making such determination to pay money into the fund, the
board shall cause to be posted on the school district's website a state-
ment containing the amount of the payment into the fund and the effect
of the payment on the projected tax levy for the ensuing fiscal year.
S 7. This act shall take effect immediately.

S1961B (ACTIVE) - Details

S1961B (ACTIVE) - Summary

Establishes an energy system tax stabilization reserve fund in the Lowville Central School District to lessen or prevent increases in the school district's real property tax levy resulting from decreases in revenue due to changes in the amount of or termination of payments in lieu of taxes receivable.

S1961B (ACTIVE) - Sponsor Memo

BILL NUMBER:S1961B
TITLE OF BILL: An act to establish an energy system tax stabilization
reserve fund in the Lowville Central School District to lessen or
prevent increases in the school district's real property tax levy
PURPOSE: To allow the Lowville Central School District to establish a
real property tax stabilization fund out of part of the proceeds of a
payment in lieu of taxes (PILOT) agreement from the Maple Ridge Wind
Farm. Upon termination or decrease of the PILOT payments, transfers
from the fund would ease a transition in the tax levy so that
taxpayers do not have to bear a sudden spike in real property taxes.
SUMMARY OF PROVISIONS:
Section one: The legislative findings section recognizes that the
school district's current receipt of significant PILOT payments from
the wind farm will at some point either terminate, or significantly
decrease, which could result in a massive destabilization of the
district's tax base and the amount of its tax levy to meet current
budget levels.
Section two: This section makes definitions of important terms in the
bill, including providing that PILOT payments may mean either PILOTS
under Real Property Tax Law 487 (RPTL Section creating municipalities
to enter into PILOT agreements for wind energy systems) or Subdivision

fifteen of § 858 of the General Municipal Law (authorizing IDA created
PILOTs) and adopting the definition of wind energy systems already
found in Real Property Tax Law § 487.
Section three: (a) This subsection permits the school district to
create a tax stabilization fund by paying into such funds the amount
of PILOT payments received which is not required to prevent an
increase from the real property tax levy over the preceding budget
year.
(b) This subsection permits the deposit of PILOT payments already
accrued into the stabilization fund.
(c) This subsection provides limitations on the ability to withdraw
from the stabilization fund as follows (1) no withdrawal may be made
in any year in which PILOT payments receivable equal or exceed those
from the preceding year; (2) for any year in which the amount of
payments is less than the preceding year, a withdrawal may be made in
the amount of the decrease; (3) for any fiscal year in which no PILOT
payment will be made, a withdrawal may be made in an amount not to
exceed the PILOT payment for the preceding year plus the amount, if
any, authorized to be withdrawn in such preceding year.
Other provisions require withdrawals for any other purpose would
require voter approval submitted as a separate proposition and applies
existing controls and reporting requirements over expenditure of
district money.
Section four: Makes requirements for information concerning the fund,
deposits into, expenditures from it, and the affect on the tax levy
for purposes of the property tax report card under subdivision seven
of § 1716 of the Education Law.
Section five: Makes provisions with regard to the real property tax
cap so that use of the fund does not facilitate avoiding such cap.
Section six: Should this act take effect after the last date for
submission of the district's real property tax report card to the
Department of Education, this section makes provision for public
notice of a statement concerning payment into the fund and the effect
on the tax levy.
Section seven: provides for an immediate effective date.
EXISTING LAW: A similar tax stabilization fund was established for
the Oswego community as a result of large PILOT payments from a
nuclear energy facility. (See Chapter 202, Laws of 2001).
JUSTIFICATION: The Maple Ridge Wind Farm in Lewis County, one of the
largest and most successful wind energy enterprises in the United
States, pays an annual PILOT payment of around $8.9 million to
municipalities and school districts which host wind towers. This PILOT
payment has been one of the leading causes for wide community
acceptance and support of this important alternative energy project.
The Lowville Central School District receives about $3.9 million of
this amount each year. The district has employed this money prudently,
using about $2.7 million each year to keep the tax levy level and
allowing the balance to accrue in fund balance. The PILOT agreement
started in the 2006-2007 school year and will end in 2021-2022. At
that point, the PILOT will either terminate completely or be replaced,
perhaps by an IDA sponsored PILOT which would not be as generous. The
result would be that the PILOT at that point would cease to be a
windfall and its loss would become the source of wrenching dislocation
in the district's finances.
The district requires the approval given in this bill to accumulate a
tax stabilization fund which will one day be equal to the task of
smoothing the transition that will be required by ramping up the tax
levy over a period of time. Absorbing all of the loss or decrease in
the PILOT in one or two years would cause a severe spike in the tax
levy, dramatic slashing of programs or both. The bill contains
significant safeguards to insure the dedication of PILOT funds for
this purpose.
LEGISLATIVE HISTORY: 2011-12 S. 6835 - Passed Senate/A. 9859 - Real
Property Taxation Committee.
FISCAL IMPLICATIONS: None for the State of New York. Positive impact
on the district's fiscal and tax levy stability.
EFFECTIVE DATE: Immediate.

S T A T E O F N E W Y O R K
________________________________________________________________________
1961--B
Cal. No. 1313
2013-2014 Regular Sessions
I N S E N A T E
(PREFILED)
January 9, 2013
___________
Introduced by Sen. GRIFFO -- read twice and ordered printed, and when
printed to be committed to the Committee on Education -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee -- reported favorably from said committee and
committed to the Committee on Finance -- committee discharged and said
bill committed to the Committee on Rules -- ordered to a third read-
ing, amended and ordered reprinted, retaining its place in the order
of third reading
AN ACT to establish an energy system tax stabilization reserve fund in
the Lowville Central School District to lessen or prevent increases in
the school district's real property tax levy
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings. The legislature hereby finds that the
private development and ownership of wind energy systems located within
the Lowville Central School District may result in instability in the
real property tax base and the budgets of the district due to the uncer-
tainty with the assessments of such wind energy systems at the time the
payments in lieu of taxes terminate.
S 2. Definitions. As used in this act:
(a) "Board of education" or "board" means the board of education of
the Lowville Central School District.
(b) "Energy system tax stabilization reserve fund" or "fund" means the
energy system tax stabilization reserve fund established pursuant to
this act.
(c) "Payments in lieu of taxes" or "payments" means payments in lieu
of taxes receivable by the school district pursuant to contracts entered
into in accordance with section 487 of the real property tax law or
subdivision 15 of section 858 of the general municipal law on any wind
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.

LBD01518-05-3
S. 1961--B 2
energy system located wholly or partially within the Lowville Central
School District.
(d) "School district" or "district" means the Lowville Central School
District.
(e) "Wind energy systems" shall be defined as in section 487 of the
real property tax law and shall include the land upon which the system
is located, any equipment used in such generation, and equipment leading
from the system to the interconnection with the transmission system.
S 3. The board of education is hereby authorized to establish an ener-
gy system tax stabilization reserve fund to lessen or prevent increases
in the school district's real property tax levy resulting from decreases
in revenue due to changes in the amount of or termination of payments in
lieu of taxes receivable by the school district provided, however, that
no such fund shall be established unless approved by a majority vote of
the qualified voters of the district present and voting on a separate
ballot proposition therefor at either a special district meeting which
the board of education may call for such purposes, or at the annual
district meeting and election, to be noticed and conducted in either
case in accordance with the provisions of article 41 of the education
law. Further, the notice of the special district meeting or annual
district meeting and election, as applicable, at which such ballot
proposition shall be presented to the voters, shall explain the means by
which moneys shall be paid into and withdrawn from such fund as set
forth hereinafter in subdivisions (a) and (c) of this section. Moneys
shall be paid into and withdrawn from the fund, and the fund shall be
administered, as follows:
(a) For any school district fiscal year commencing after the effective
date of this act and after the establishment of the energy system tax
stabilization reserve fund, the board of education may determine that
there shall be paid into the fund all or any portion of the amount by
which the payments in lieu of taxes receivable by the school district
for such fiscal year is not required to prevent an increase in the
school tax levy from the immediately preceding fiscal year, provided
that no payment into the reserve fund shall cause the balance of the
fund to exceed the sum of twelve million dollars. Such determination may
be amended to reduce the amount paid into the fund in the event that the
district's original proposed budget is not approved by the voters.
(b) The board of education is hereby authorized to make a one-time
deposit into the energy system tax stabilization reserve fund in an
amount not to exceed the balance over any maximum allowable balance
authorized or required by any other law that accrued prior to the estab-
lishment of the energy system tax stabilization reserve fund as a result
of the receipt of any payment in lieu of taxes, provided, however, that
no such deposit shall be made unless approved by a majority vote of the
qualified voters of the district present and voting on a separate ballot
proposition therefor at either a special district meeting which the
board of education may call for such purpose, or at the annual district
meeting and election, to be noticed and conducted in either case in
accordance with the provisions of article 41 of the education law.
Further, the notice of the special district meeting or annual district
meeting and election, as applicable, at which such ballot proposition
shall be presented to the voters, shall explain the means by which
moneys shall be paid into and withdrawn from such fund as set forth
hereinafter in subdivisions (a) and (c) of this section.
(c) Moneys may be withdrawn from the energy system tax stabilization
reserve fund subject to the following limitations:
S. 1961--B 3
(1) For any fiscal year for which payments in lieu of taxes receivable
by the school district equal or exceed the amount of such payments
received for the immediately preceding fiscal year, no amount shall be
withdrawn from the fund.
(2) For any fiscal year for which payments in lieu of taxes receivable
by the school district are less than the amount of such payments
received for the immediately preceding fiscal year, the board of educa-
tion may authorize a withdrawal from the fund in an amount not to exceed
the amount of the payments received for the immediately preceding year
less the amount of the payments receivable for the fiscal year for which
the budget and tax levy is being determined.
(3) For any fiscal year for which the school district does not antic-
ipate receiving any payments in lieu of taxes, the board of education
may authorize a withdrawal from the fund in an amount not to exceed the
amount of such payments received for the last preceding fiscal year for
which such payments were received plus the amount, if any, which the
board of education authorized to be withdrawn from the fund for such
last preceding fiscal year.
(4) Notwithstanding paragraph 1 of this subdivision, and in addition
to any withdrawal from the fund authorized pursuant to paragraph 2 or 3
of this subdivision, moneys may be withdrawn from the fund for any
fiscal year to be expended for any other lawful purpose, provided,
however, that no such withdrawal and expenditure shall be made unless
approved by a majority vote of the qualified voters of the district
present and voting on a separate ballot proposition therefor at either a
special district meeting which the board of education may call for such
purpose, or at the annual district meeting and election, to be noticed
and conducted in either case in accordance with the provisions of arti-
cle 41 of the education law, such purposes as may be set forth in a
separate proposition submitted by the board of education and approved by
the qualified voters of the school district.
(d) Determinations by the board of education to pay money into the
energy system tax stabilization reserve fund, authorizations by the
board to withdraw money from the fund, and decisions by the board to
submit a ballot proposition to the voters authorizing a withdrawal from
the fund shall be made on or before the last date provided by law for
the submission to the state education department of the school
district's property tax report card pursuant to subdivision 7 of section
1716 of the education law.
(e) The moneys in the energy system tax stabilization reserve fund
shall be deposited, invested and accounted for in the manner provided
for in subdivisions 2 and 6 of section 3651 and section 3652 of the
education law.
S 4. At the same time that the property tax report card prepared by
the school district pursuant to subdivision 7 of section 1716 of the
education law is filed and made publicly available, the school district
shall also prepare, file with the commissioner of education and make
publicly available in the same manner as required for the property tax
report card, a report which shall contain the following information
relating to the energy system tax stabilization reserve fund: (a) the
balance of the fund as of the start of the current fiscal year, (b) all
deposits or withdrawals from the fund for the current fiscal year, (c)
an analysis of the impact of such withdrawals on the school district's
tax levy for the current fiscal year, (d) proposed deposits and with-
drawals for the ensuing fiscal year, and (e) an analysis of the impact
S. 1961--B 4
of such proposed deposits and withdrawals on the projected tax levy for
the ensuing fiscal year if the proposed budget is adopted.
S 5. When computing the school district's tax levy limit for a school
year pursuant to subdivision 3 of section 2023-a of the education law:
(a) The payments in lieu of taxes receivable for the prior school year
shall be decreased by any amount paid into the energy system tax
stabilization reserve fund for such prior school year and increased by
any amount withdrawn from the fund for such prior school year.
(b) The payments in lieu of taxes receivable in the coming fiscal year
shall be decreased by the amount to be paid into the energy system tax
stabilization reserve fund for such coming fiscal year and increased by
any amount to be withdrawn from the energy system tax stabilization
reserve fund for such coming fiscal year.
S 6. Notwithstanding the provisions of subdivision (c) of section
three of this act and section four of this act, if this act shall take
effect later than fourteen days prior to the last date provided by law
for the submission to the state education department of the school
district's property tax report card for the school district's ensuing
fiscal year, then a determination by the board of education to pay money
into the fund for the ensuing fiscal year may be made on or before the
last date provided by law for the levy of taxes for such ensuing fiscal
year. Upon making such determination to pay money into the fund, the
board shall cause to be posted on the school district's website a state-
ment containing the amount of the payment into the fund and the effect
of the payment on the projected tax levy for the ensuing fiscal year.
S 7. This act shall take effect immediately.

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